Associate Professor Chario Vithurapakorn, Deputy Chief Executive Officer of Eastern Polymer Group Public Company Limited (EPG), a leading global manufacturer and distributor of polymer and plastic products, said the International Monetary Fund (IMF) projects global economic growth of 3.2% in 2024-2025. The global economic recovery is slow but steady, with regional variations. Global inflation is expected to continue to decline, but is subject to pressure from rising interest rates and protracted geopolitical conflicts.
These factors pose challenges to EPG's global operations. In fiscal year 2024/2025 (April 2024 to March 2025), the company will focus on the following businesses:
- Achieving organic growth: Existing products and new innovative products in all business groups enable us to comprehensively meet customer requirements, retain our existing customer base and expand to new customer groups.
- In the future, we will focus on research and development to create innovative products and new S-curves to support our core businesses and establish new business groups.
- Improving the collaborative planning and management of joint ventures in South Africa.
- Use energy efficiently and reduce greenhouse gas emissions.
EPG has set targets for sales growth of 8-10% and gross profit margin of 30-33% for the 2023/2024 fiscal year (April 2023 to March 2024) by promoting its business across the following three business groups:
The Aeroflex brand insulation business is targeting sales growth of 6-8% with premium insulation products sold domestically, in the US and in Japan. For the ultra-low temperature insulation industrial group and products used in air conditioning duct systems, there will be increased marketing efforts domestically and in the US. For the domestic project customer group, Aeroflex will benefit from relocating its production base to the EEC, and in the US, the major project customer groups include the semiconductor/cloud/automotive sectors.
Aeroflex Insulation is committed to energy efficiency and environmental stewardship, with the organization and products being Carbon Footprint Certified, and as an EPG pilot group, with a concrete support plan, we aim to achieve net-zero emissions by 2042.
The Aeroklas branded Auto Parts & Accessories business is targeting sales growth of 10-12% by developing innovative products together with OEM automotive customers in Europe, Asia and the US. With its expertise in manufacturing lightweight and durable polymer and plastic auto parts that can fully replace metal materials, Aeroklas contributes to reducing vehicle weight, energy usage and carbon dioxide emissions. Importantly, the company meets safety standards, earning the trust of automotive brands who have chosen Aeroklas as the manufacturer for various auto parts that will be gradually launched this year. In addition, Aeroklas is working with automakers to develop innovative products for both ICE and EV vehicles, with ongoing projects to create new S-curve products.
The Australian business, part of the Aeroclass Asia Pacific Group (AAPG), continues to undergo a turnaround phase by strengthening collaboration between operations and brands in Australia, with Aeroclass Fitment Centres playing a key role in supporting fleet and OEM operations.
The EPP branded plastic packaging business is targeting sales growth of 3-5%. EPP is looking to expand its market share in food packaging and aims to be the plastic packaging manufacturer of choice for industrial customers with its eici plastic packaging brand certified to a range of standards including Thai Industrial Standards, GMP, HACCP, BRC and most recently FSC (Forest Stewardship Council). Over the last year, EPP has improved production efficiency and is ready to ramp up production once plastic packaging orders start to recover.
EPP employs innovative production processes to reduce manufacturing waste and offers a variety of packaging solutions, including paper packaging and bioplastic packaging, to comprehensively meet customers' needs.
Its joint ventures in Thailand, India and China in the insulation and auto parts and accessories sectors are growing smoothly along their respective industries. At its South African joint venture, the company and other investors have provided consultants and experts in various fields to closely monitor, participate in problem-solving and improve operational efficiency.
Assoc Prof Chaliow added that the company has set an investment budget of 466 million baht in total for the 2024/2025 fiscal year for product development, adding machinery and improving production lines. In addition, the board resolved to propose to the 2024 annual general meeting to approve the payment of an annual dividend of 0.10 baht per share to shareholders, totalling 280 million baht. The 2024 annual general meeting is scheduled for 24 July 2024. If approved, the record date for eligible shareholders will be 2 August 2024 and the dividend will be paid on 21 August 2024.
